BILL NUMBER: SB 2175	CHAPTERED  09/29/00

	CHAPTER   854
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 28, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 30, 2000
	AMENDED IN ASSEMBLY   AUGUST 29, 2000
	AMENDED IN ASSEMBLY   AUGUST 24, 2000
	AMENDED IN ASSEMBLY   AUGUST 18, 2000
	AMENDED IN SENATE   MAY 2, 2000

INTRODUCED BY   Senator Burton

                        FEBRUARY 25, 2000

   An act to amend Sections 18804 and 18808 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 2175, Burton.  California Peace Officer Memorial Foundation:
contributions:  income tax return.
   Under existing law regulating the administration of personal
income taxes and bank and corporation taxes, individual taxpayers are
allowed to contribute amounts in excess of their tax liability for
the support of specified funds or accounts, including, among others,
the California Firefighters' Memorial Fund and the California Peace
Officer Memorial Foundation.  Existing law provides for the repeal of
the contribution provisions for these funds on January 1, 2006, or
on January 1 of any calendar year that the Franchise Tax Board
estimates the minimum contribution amount will be less than a
prescribed amount.
   This bill would instead make those check-off provisions
inoperative in any calendar year, after the 2006 repeal date has been
deleted, in which the Franchise Tax Board makes the required
estimate.
   The bill would become operative for returns filed in 2001 for
taxable years beginning on and after January 1, 2000.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 18804 of the Revenue and Taxation Code is
amended to read:
   18804.  (a) This article shall remain in effect only until January
1, 2006, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2006, deletes or extends
that date.
   (b) (1) If the repeal date specified in subdivision (a) has been
deleted and if, thereafter, in any calendar year the Franchise Tax
Board estimates by September 1 that contributions described in this
article made on returns filed in that calendar year will be less than
the minimum contribution amount prescribed by paragraph (2), then
this article is inoperative with respect to taxable years beginning
on and after January 1 of that calendar year.  The Franchise Tax
Board shall estimate the annual contribution amount by September 1 of
each year using the actual amounts known to be contributed and an
estimate of the remaining year's contributions.
   (2) For purposes of this section, "minimum contribution amount"
means two hundred fifty thousand dollars ($250,000) for any calendar
year.
   (c) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.
  SEC. 2.  Section 18808 of the Revenue and Taxation Code is amended
to read:
   18808.  (a) This article shall remain in effect only until January
1, 2006, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2006, deletes that date.

   (b) (1) If the repeal date specified in subdivision (a) has been
deleted and if, thereafter, in any calendar year the Franchise Tax
Board estimates by September 1 that contributions described in this
article made on returns filed in that calendar year will be less than
the minimum contribution amount prescribed by paragraph (2), or the
adjusted amount specified in subdivision (c), as may be applicable,
then this article is inoperative with respect to taxable years
beginning on and after January 1 of that calendar year.  The
Franchise Tax Board shall estimate the annual contribution amount by
September 1 of each year using the actual amounts known to be
contributed and an estimate of the remaining year's contributions.
   (2) For purposes of this section, "minimum contribution amount"
means two hundred fifty thousand dollars ($250,000) for any calendar
year.
   (c) For each calendar year, beginning with calendar year 2001, the
Franchise Tax Board shall adjust, on or before September 1 of that
calendar year, the minimum estimated contribution amount specified in
subdivision (b) as follows:
   (1) The minimum estimated contribution amount for the calendar
year shall be an amount equal to the product of the minimum estimated
contribution amount for the prior September 1 multiplied by the
inflation factor adjustment as specified in paragraph (2) of
subdivision (h) of Section 17041, rounded off to the nearest dollar.

   (2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.
   (d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.
  SEC. 3.  Notwithstanding Section 18415 of the Revenue and Taxation
Code, or any other provision of law, the amendments to Sections 18804
and 18808 of the Revenue and Taxation Code made by this act shall
apply to tax returns filed in 2001 and thereafter for taxable years
beginning on and after January 1, 2000.
